Grow Company, Inc. v. Chokshi

959 A.2d 252, 403 N.J. Super. 443
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 12, 2008
DocketA-4282-06T2
StatusPublished
Cited by80 cases

This text of 959 A.2d 252 (Grow Company, Inc. v. Chokshi) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grow Company, Inc. v. Chokshi, 959 A.2d 252, 403 N.J. Super. 443 (N.J. Ct. App. 2008).

Opinion

959 A.2d 252 (2008)
403 N.J. Super. 443

GROW COMPANY, INC., Plaintiff-Appellant/Cross-Respondent,
v.
Dilip CHOKSHI and Pharmachem Laboratories, Inc., Defendants-Respondents/Cross-Appellants.

No. A-4282-06T2.

Superior Court of New Jersey, Appellate Division.

Argued September 24, 2008.
Decided November 12, 2008.

*255 Dennis F. Gleason, Roseland, argued the cause for appellant/cross-respondent (Carella, Byrne, Bain, Gilfillan, Cecchi, Stewart *256 & Olstein, attorneys; Carl R. Woodward, III and Mr. Gleason, of counsel and on the brief).

Richard L. Ravin, argued the cause for respondents/cross-appellants (Hartman & Winnicki, attorneys; Mr. Ravin, of counsel and on the brief; Richard E. Kummer, on the brief).

Before Judges FISHER, C.L. MINIMAN and BAXTER.

The opinion of the court was delivered by

FISHER, J.A.D.

In this appeal, we review a partial summary judgment that applied the terms of an earlier settlement agreement as a basis for dismissing the claims of plaintiff Grow Company, Inc. against defendant Dilip Chokshi, a former employee, and defendant Pharmachem Laboratories, Inc., with whom Chokshi presently has a business relationship. The judge also found that the settlement agreement authorized an award of counsel fees to Chokshi, but he did not quantify the amount due, choosing instead to dismiss that claim without prejudice to be renewed in a later suit. We conclude that the disposition of the fee issue was not a final determination and left interlocutory the order under review. Although we again condemn the foisting of jurisdiction upon this court in the absence of a final order, see Vitanza v. James, 397 N.J.Super. 516, 938 A.2d 166 (App.Div. 2008), in these particular circumstances we find it equitable to grant leave to appeal out of time, and we reverse the partial summary judgment.

I

The record reveals that Grow is engaged in the manufacture and distribution of nutrients and nutritional supplements. Chokshi is a chemist, who was employed by Grow in 1979 and eventually became its director of research, development and quality control. Grow claims that, during his employment, Chokshi learned of Grow's alleged trade secrets and proprietary processes.

In 1982, Chokshi executed a confidentiality agreement (the 1982 agreement) by which he agreed he would not "at any time, either during the period of his employment with [Grow] or at any time thereafter in any fashion, form or manner, either directly or indirectly, divulge, disclose or communicate to any person, firm or corporation in any manner whatsoever any information of any kind, nature or description concerning any matters affecting or relating to the business of [Grow], including ... all product formulations and other trade secrets...."

In October 1991, Chokshi and two others terminated their relationship with Grow and formed Bio-Foods, Ltd. In late November 1999, Grow sued Bio-Foods, Chokshi and the other former employees, alleging they unfairly competed with Grow from 1991 to 1999. Among other things, Grow asserted claims of product disparagement, trade libel, and the conversion of Grow's trade secrets. The parties to that suit eventually resolved their differences and executed a document entitled "Release, Covenant Not To Sue and Settlement Agreement" (the settlement agreement), which released "all claims against Releasees which Grow ever had, now has or hereafter can, shall or may have, for, upon or by reason of any matter, cause or thing whatsoever from the beginning of the world to and including the date of Grow's execution of this Agreement." The settlement agreement was executed on December 21, 2001.

The action at hand was commenced by Grow against Chokshi and Pharmachem on *257 July 27, 2005. In its pleadings, Grow alleged that "[o]n or before the time of the settlement" Chokshi became associated with Pharmachem and again resumed his alleged course of unfair competition through use of Grow's alleged trade secrets and proprietary information. Grow alleged it had recently discovered that "between January 9, 2001 and May 31, 2005," Pharmachem and Chokshi applied for five patents "that are based upon Grow's processes and formulas, which are Grow's trade secrets and proprietary information" learned by Chokshi during his employment with Grow.

Chokshi and Pharmachem denied these allegations and filed a counterclaim alleging that Grow had breached the settlement agreement by commencing this action. The counterclaim also sought, among other things, a judgment declaring unenforceable the 1982 agreement and an award of counsel fees based on the settlement agreement. In this latter respect, the settlement agreement contains the parties' stipulation that should Grow commence an action barred by its covenant not to sue, then the parties encompassed by the settlement agreement's terms "shall be entitled to recover from Grow all their attorney's fees, expenses and costs of suit incurred in connection therewith."

After a period of discovery, the parties filed dispositive motions. Grow moved for partial summary judgment, seeking a declaration that neither Chokshi nor Pharmachem was entitled to an award of attorneys' fees. Chokshi and Pharmachem moved for summary judgment, arguing, among other things, that Grow's suit was barred by the settlement agreement, the absence of any proof of a trade secret, and the lack of any duty that would prohibit the revelation of any information learned while Chokshi was employed by Grow. In ruling on these motions, the trial judge rendered separate written opinions on December 22, 2006.

In the judge's first written opinion, he granted that part of Grow's motion that sought a dismissal of Pharmachem's counterclaim for an award of attorneys' fees based on the settlement agreement. The judge reasoned that Pharmachem was not a signatory to the settlement agreement and did not fall within the settlement agreement's description of the class of persons entitled to its benefits. The judge, however, rejected Grow's argument that Chokshi was not entitled to fees based upon the terms of the settlement agreement. The judge recognized that it was "conceded Chokshi has not paid for any legal fees and/or costs associated with this litigation," because they were paid by Pharmachem. However, the judge determined that fees may still be awarded even though the litigation was financed by others.

By way of his second opinion, the judge held that the settlement agreement, which encompassed "extraordinarily broad language," barred all the claims brought by Grow against Chokshi and Pharmachem, and warranted the entry of summary judgment in their favor. The judge did not explain how the settlement agreement was broad enough to bar the claims against Pharmachem, which was not a signatory to the settlement agreement, but not broad enough to permit an award of fees based upon Grow's alleged breach of the agreement, as he held in his first opinion. Because he concluded that the settlement agreement barred Grow's claim, the judge did not rule upon the other arguments posed by Chokshi and Pharmachem in support of their motion for summary judgment.[1]

*258 The judge engaged in a status conference with counsel on December 22, 2006, the day the motions were decided. At that time, the parties had not received the judge's written opinions, but at the start of the hearing, the judge indicated the upshot of his rulings and then asked for comments about the future course of the suit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Amber Jones, Etc. v. MacKlock National Credit, LLC
New Jersey Superior Court App Division, 2025
Sherri Adler v. East Brunswick Board of Education
New Jersey Superior Court App Division, 2025
Magyar Bank v. Mauro Motors, Inc.
New Jersey Superior Court App Division, 2025
1410 Grand Adams, LLC v. Trematore Construction, LLC
New Jersey Superior Court App Division, 2025
Roma Pizzeria, Etc. v. Harbortouch
New Jersey Superior Court App Division, 2025
In the Matter of Vincent W. Urbank
New Jersey Superior Court App Division, 2025
Patricia Enright Howard v. Todd Lewis Howard
New Jersey Superior Court App Division, 2024
W.E. and N.E. v. A.E.
New Jersey Superior Court App Division, 2024
Tyree Deshawn Mims v. City of Gloucester
New Jersey Superior Court App Division, 2024
In the Matter of County of Essex and Fop Lodge 106
New Jersey Superior Court App Division, 2024
Alpha Realities, LLC v. Kelsey Jackson
New Jersey Superior Court App Division, 2024
R.B. v. Franklin Township Housing Authority
New Jersey Superior Court App Division, 2024
State of New Jersey v. Carmen A. Sexton
New Jersey Superior Court App Division, 2024
Laura Germinario v. Westwood Regional Board of Education
New Jersey Superior Court App Division, 2023

Cite This Page — Counsel Stack

Bluebook (online)
959 A.2d 252, 403 N.J. Super. 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grow-company-inc-v-chokshi-njsuperctappdiv-2008.